The Importance of Price Transparency in Healthcare
Price transparency is important in making effective programs and in service delivery This way the experience of patients in healthcare system will improve greatly Patients are willing to pay if they know how much is needed upfront This will get rid of delivery of care without getting compensation. Patients need to be well informed on the amount to pay and by what time This way patients can decide on what services to seek
There is a lot of effort from insurance companies and healthcare providers to improve price transparency. When there is price transparency, there will delivery of quality services. Scarcity of information on pricing results in cost of care The push for price transparency has been going on for many years now. When patients go for in-patient treatment, most of the times they have no idea what they are expected to pay Price transparency gives patients an opportunity to compare healthcare systems and choose the best and enable healthcare providers to make cost conscious decisions
The health care system cannot be functional if people cannot compare the
pricing with other services as they don’t know the exact value of the purchase However, thing seem to take a turn for the best as providers, insurers and drug makers are making progress in pricing transparency and delivery of quality drugs. Healthcare spending is growing above the rate of inflation and patients are burdened with the rising demand to shop for healthcare services There are alternative payment methods that require providers to get information from doctors on what the cost of ordering certain tests
If providers don’t know the standard price of treatment, it can be difficult to come up with an accurate figure. Prices are known to vary up to thousands of dollars in hospitals that are in the same neighborhood The price of insurance for a patient may have little relation with what a hospital charges This is why price transparency is important to avoid running into unwanted cost that could be easily avoided
Price transparency in the healthcare system will enable patients to identify which hospitals they can access based on what they can afford It is not surprising to know that at times physicians don’t even know the price of services they provide
Plus, it can get complicated if the patients don’t even know the structure of their insurance cover The estimates tend to vary greatly if a patient goes for treatment and another underlying condition is discovered It means there is a lot of coordination needed between providers and the health plan to get an estimate of prices Major healthcare plan use a cost estimator tool to give patients a cost estimate.